New Incentive for States to Adopt the ACA Medicaid Expansion: Implications for State Spending

The House Energy and Commerce Committee reconciliation proposal as part of the COVID relief package aims to encourage non-expansion states to take up the expansion by providing an additional temporary fiscal incentive for states to newly implement the ACA Medicaid expansion. This brief provides illustrative estimates of the net fiscal benefit to states from these incentives relative to state costs under the expansion.